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Asidera Company has analyzed the costs of producing and selling 5,000 units of its only product to be as follows: Direct Materials 60,000 Direct Labor

Asidera Company has analyzed the costs of producing and selling 5,000 units of its only product to be as follows:

Direct Materials 60,000
Direct Labor 40,000
Variable Factory Overhead 20,000
Fixed Factory Overhead 30,000
Variable Marketing & Admin Expenses 10,000
Fixed Marketing & Admin Expenses 15,000

Required:

  1. Compute the number of units needed to breakeven at a per unit sales price of Php 38.50.
  2. Determine the number of units that must be sold to produce an Php 18,000 profit, at a Php 40 per unit sales price.
  3. Determine the price Formanes must charge at a Php 5,000 unit sales level, to produce a profit equal to 20% of sales.

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